Arbor Realty price target lowered to $8 from $10 at Piper Sandler

Piper Sandler lowered the firm’s price target on Arbor Realty (ABR) to $8 from $10 and keeps an Underweight rating on the shares ahead of Q4 results for the firm’s mortgage finance coverage. The sector backdrop has shifted positively, driven by 30-year rates falling to 6.2% from 7%-plus highs earlier in the year and material tightening in agency spreads. While the market has not yet fully “normalized,” momentum is building, Piper argues. Mortgage application volumes are rising, led by an 18% sequential and 100%-plus year-over-year surge in refinance activity. Additionally, GSE reform is likely to return to the spotlight given the administration’s push for a deal under President Trump and FHFA Director Bill Pulte, it adds.